“ US President Donald Trump and Australian Prime Minister Anthony Albanese signed an $8.5 billion agreement on cooperation in the field of critical minerals at the White House. The document aims to strengthen the position of the allies against the backdrop of China’s increasingly tight control over the global market for rare earth metals. Source: Reuters, PBS Details: Under the agreement, both countries committed to invest at least $1 billion each over the next six months in rare earth mining and processing projects. The purpose of the agreement is to provide the US with stable access to Australia’s reserves of rare earth metals and other critical minerals needed to manufacture electronics, batteries, semiconductors and military technology. “In about a year, we’ll have so many critical minerals and rare earths that we won’t know what to do with them,” Trump said after the signing. Anthony Albanese, in turn, added that the agreement takes relations between the US and Australia “to a new level”. The move is a direct response to China, which has tightened controls on exports of its rare earth minerals. Earlier this month, Beijing announced it would require foreign companies to obtain special permits to export magnets containing even trace amounts of rare-earth components made in China or with Chinese technology. The Trump administration sees it as an attempt to gain leverage over the global economy by controlling technology supply chains. “Australia is really going to be very helpful in the effort to make the global economy more secure, less vulnerable to the kind of blackmail from China that we’re seeing right now,” said Kevin Gassett, director of the White House National Economic Council. For decades, China has used dumping tactics, dumping surpluses of critical minerals on the market to drive down prices and crowd out competitors from other countries. “China is a command-and-control economy, and we and our allies will not submit to command or control,” said US Treasury Secretary Scott Bessent. The US Export-Import Bank (EXIM) has already sent seven letters of intent totaling more than $2.2 billion to finance projects by Australian companies: Arafura Rare Earths, Northern Minerals, Graphinex, Latrobe Magnesium, VHM, RZ Resources and Sunrise Energy Metals. Governments have said they will also help American aluminum producer Alcoa’s project to build a gallium plant in Western Australia. This plant is expected to provide up to 10% of the world’s supply of the metal, which is critical for the semiconductor and defense industries. Australia will provide up to $200 million in concessional financing, and the United States will also make an investment in exchange for the right to buy back part of the production. Background: EU companies are bracing for more production shutdowns and losses as Beijing continues to clamp down on exports of rare-earth elements, despite a July agreement to speed up supplies to the EU. India is working to get samples of rare earth metals from Myanmar with the help of an influential rebel group. Turkey is discussing with the United States the development of rare-earth mineral reserves in western Anatolia after similar talks with China and Russia stalled over disagreements over technology transfer and processing rights.”, — write: www.pravda.com.ua
Anthony Albanese and Donald Trump. Photo: Getty Images Source: Reuters, PBS
Details: According to the agreement, both countries pledged to invest at least $1 billion each over the next six months in projects for the extraction and processing of rare earth minerals.
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The purpose of the agreement is to provide the US with stable access to Australia’s reserves of rare earth metals and other critical minerals needed to manufacture electronics, batteries, semiconductors and military technology.
“In about a year, we’ll have so many critical minerals and rare earths that we won’t know what to do with them,” Trump said after the signing. Anthony Albanese, in turn, added that the agreement takes relations between the US and Australia “to a new level”.
The move is a direct response to China’s actions, which increased control over the export of its rare earth minerals. Earlier this month, Beijing announced it would require foreign companies to obtain special permits to export magnets containing even trace amounts of rare-earth components made in China or with Chinese technology. The Trump administration sees it as an attempt to gain leverage over the global economy by controlling technology supply chains.
“Australia is really going to be very helpful in the effort to make the global economy more secure, less vulnerable to the kind of blackmail from China that we’re seeing right now,” said Kevin Gassett, director of the White House National Economic Council.
For decades, China has used dumping tactics, dumping surpluses of critical minerals on the market to drive down prices and crowd out competitors from other countries.
“China is a command-and-control economy, and we and our allies will not submit to command or control,” said US Treasury Secretary Scott Bessent.
The US Export-Import Bank (EXIM) has already sent seven letters of intent totaling more than $2.2 billion to finance projects by Australian companies: Arafura Rare Earths, Northern Minerals, Graphinex, Latrobe Magnesium, VHM, RZ Resources and Sunrise Energy Metals.
Governments have said they will also help American aluminum producer Alcoa’s project to build a gallium plant in Western Australia. This plant is expected to provide up to 10% of the world’s supply of the metal, which is critical for the semiconductor and defense industries. Australia will provide up to $200 million in concessional financing, and the United States will also make an investment in exchange for the right to buy back part of the production.
Prehistory:
- EU companies are preparing to new production shutdowns and losses, as Beijing continues to tightly control the export of rare earth elements, despite the July agreement to speed up supplies to the European Union.
- India is working to obtain samples of rare earth metals from Myanmar with the help of an influential rebel group.
- Turkey discusses from the USA development of stocks of rare earth mines erals in western Anatolia after similar talks with China and Russia stalled over disagreements over technology transfer and processing rights.